The global IC chip shortage has snowballed into a new kind of crisis that is now affecting almost every industry directly or indirectly. For instance, when the production of three major automobile companies was halted due to the chip shortage, the steel demand went down, affecting steel production. This is how it turned into a domino effect for various industries.
Chips are among the most traded commodities globally and an essential part of every cutting-edge product we use today. The integration of chips into all facets of our lives has provided us with more features and capabilities than ever before. These tiny integrated circuits pack billions of electronic components and constitute the backbone of our omnipresent electronics, from smartphone-controlled appliances to medical devices that can detect cancer.
Semiconductor-based devices use a small amount of electrical power to control a flow of electrons (a current) through a solid material. They are the foundation of our digital world, and to keep up with the increasing demands of technology, an uninterrupted and growing supply of IC chips is indispensable.
Disruptions to supply chains caused by the Covid-19 pandemic and wrong speculation of low demand have resulted in a greater demand and supply gap.
The Record Surge Estimation for Semiconductors
The semiconductor market is surging to a record high because of the growing demand for smartphones, computers, video games, appliances, cloud computing, AI, and automobiles. The World Semiconductor Trade Statistics is valuing the total market volume at $601.49 billion for 2022, eclipsing the previous high of $552.96 billion projected for 2021. Due to this high demand, experts are saying that the shortage can go well into 2023.
Many European countries and the US have acknowledged this crisis and expressed plans to increase their capacity to produce more chips. However, this is not an overnight project. Setting up new plants and making them fully operational will take at least two more years.
Hence, online suppliers in Asia can prove the quick solution to this situation. Their proximity to the significant chip producers and better industry connections can fill this demand and supply gap. One such supplier is Utsource, which has a wide range of IC chips for customers worldwide.
The buyer can directly reach such suppliers and find a solution to their requirements.
